The Global X US 100 ETF Fund (ASX: U100) is an ASX ETF focused on innovation.
This week, a report from the ETF provider shed light on the success of the fund since it adjusted its methodology.
Since September 2024, this ASX ETF has risen by roughly 41%.
Why did this ASX ETF change?
According to Global X, the U100 methodology was upgraded roughly a year ago to capture a broader and more accurate picture of American innovation.
The index now spans both NASDAQ and NYSE-listed companies.
The change included introducing an innovation filter based on measurable research & development (R&D) activity and intangible asset productivity.
It now applies a refined weighting structure to reward genuine innovation rather than inherited scale.
To qualify, companies must demonstrate measurable reinvestment through either a positive R&D-to-sales ratio or productivity from intangible assets.
This simple rule separates firms that build from those that merely own. It shifts exposure away from legacy names with slower product cycles toward those funding the next phase of industrial and digital transformation.
The change has proven successful since September 2024.
The U100's Index has outperformed key US large-cap innovation benchmarks such as the Nasdaq 100 Index by around 5% since the September 2024 methodology upgrade.
Inclusions such as Oracle, Taiwan Semiconductor, IBM, and Snowflake led the gains, supported by renewed capital investment and AI-related demand.
Digging into the fund now
Looking at the underlying holdings of this ASX ETF now, it seeks to track the performance of 100 of the largest innovative companies listed on the US market on either the NASDAQ or NYSE.
It focuses on technology and pioneering US companies, providing exposure to sectors with high growth potential, including technology, consumer goods, and others.
At the time of writing, the ASX ETF is made up of 100 holdings.
Its largest exposure to individual holdings by weight:
- Nvidia (10.18%)
- Apple (9.15%)
- Microsoft (8.73%)
By sector:
- Packaged Software (30.99%)
- Semiconductors (27.30%)
- Internet Software/Services (15.67%)
Geographically, it is almost solely exposed to US companies (92.39%). With very small exposure to Taiwan (2.02%). All other countries are less than 1%.
The post This ASX ETF has raced 40% higher since changing its methodology appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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